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SAP’s Intelligent Enterprise Strategy

The document discusses SAP's S/4HANA and the intelligent enterprise. It describes how S/4HANA differs from legacy ERP systems in its use of in-memory computing, simplified data models, real-time analytics, and machine learning capabilities. Customers that have implemented S/4HANA report benefits like reduced IT costs, improved processes, and better business insights. The document also outlines new innovations in S/4HANA like reimagined business processes, predictive analytics, and how SAP Leonardo can be used to build intelligent apps on top of S/4HANA.

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1INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL Join the S/4HANA Movement SAP’s Intelligent Enterprise Strategy Lagnajit Patnaik Solutions Director, S/4HANA APJ Centre of Excellence (CoE)
2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Legacy ERP is any ERP system that cannot meet changing business needs. • Prevents innovation • Inflexible • Not real-time • Cannot leverage cloud • Reduces opportunity to work with LOB What is Legacy ERP?
3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ The Digital Era is evolving into The Intelligence Era ENABLING TECHNOLOGIES CUSTOMER VALUE CREATION • Mobile & Smartphone ubiquity • Cloud Computing • Social Networks • Big Data Cloud, Mobile & Big Data 2000s - 2010s Digital Transformation • Widespread PC adoption • Broadband Internet • ERP and business process technologies Client Server & Internet 1990s - 2000s Business Process Automation Mainframe & PCs 1960s – 1980s • Transistors & silicon revolution • Large scale Mainframe Computing adoption • Emergence of PC’s • Plant floor automation Industrial Automation • Machine Learning & Artificial Intelligence • IoT & Distributed computing • Blockchain Intelligent Technologies 2010s - 2020s Intelligent Enterprise
4PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ The age of intelligence holds promise but you have to act now. Compared to the emerging competition, you might be running in slow motion What if you could, quickly and with low risk… Empower every employee to make faster, better decisions Eliminate technology hurdles that create business challenges Redeploy limited resources towards customer value Deploy the power of AI to differentiate your business model Drastically reduce IT cost
5PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
6PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ The Intelligent Enterprise starts at the Digital Core Start with SAP S/4HANA to create end-to-end intelligent processes across all lines of business and industries, take the next leap in automation of key functions, and move first with machine learning investments by SAP Automation Next-generation processes End-to-end analytics 2 3 1 Real-time processing Combined transactions and analytics Simplified data model SAP HANA enables new capabilities
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ  46 years of innovation across all industries  390,000 customers in 193 countries  74% of the world’s transaction revenue touches an SAP system  Always providing multiple ways of innovation adoption Innovate Standardize Scale Trust 1972 1992 2004 2011 2013 2015 SAP ERP mysap.com SAP R/3 Client/Server SAP R/2 Mainframe Suite on HANA ERP w. Fiori on Hana SAP Hana In Memory 2018 We’ve come a long way together Digital Core SAP S/4HANA iERP SAP Cloud Platform SAP S/4HANA
8PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA customer momentum is strong as of April 2019 10,900+ Licensed Customers 6,000+ Deployment Projects 3,000+ Live Customers (1st thousand in 2 years 7 months, 2nd thousand in 10 months) 25 Industry solutions Cloud (SaaS) IaaS, on-premise Organizations up to 200,000 users, databases up to 49TB 160 Available in 160 countries 38 languages available
9PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ IT + Business Impact Reduction in hardware costs with a smaller system size 50% Reduction in servers; 17% IT support cost savings; from 80 subsidiary ECC instances to 1 S/4HANA system 75% Reduction in waste 40% Reduction in inventory levels 30% Examples of IT Impact Examples of Business Impact 9-month payback – thanks to reduced costs + new revenue opportunities "Removing the constraints of a highly customized system enables us to better respond to fast changing business models” - Jennifer Buko, Director of Business Transformation Business Impact
10PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Customer Speak
12PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Employees 44,395 Region APJ, Japan SAP S/4HANA Innovations • Reimagined business process for standardization and compliance • Minimized customization • Provided access to data in real-time for quick decision-making Challenges • Support a mergers and-acquisitions strategy to global expansion • Improve enterprise governance • Rearchitect the company for success in a changing, oversupplied market Benefits • 17% IT support cost savings • 75% reduced number of servers • 80 subsidiaries went live in 11 months Industry Mill Products JFE Steel Toshihiro Tanaka, Chief Financial Officer, JFE Steel Corporation “This project made it possible to standardize business processes and build a foundation for a global accounting system. SAP S/4HANA lets us analyze the group’s performance more efficiently.” “
13PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Revenue €4.5 billion (2017) Employees 28,000 Region Korea, APJ SAP S/4HANA Innovations • Expedited insights and reporting across all key LOB’s • Significant Productivity gains from improved & Responsive UX • Improved System Performance, Data Reliability Challenges • Implement standard ERP functions for completely separate accounting for different business divisions • Use analytics to check the status of trains and anticipate failures in time to head them off • Improve large data processing speeds and lay the foundation for process stability • Add to the value of rail travel through better use of IT Benefits • Cut time to perform financial information aggregation from 5 days to 3 days • Cut time to settle accounts from 5 days to 3 days • Made orders-of-magnitude improvements in the time required to perform daily activity reporting and to display inventory, deliveries, and the status of contracts, orders, stock, and exports • Cut the accounting document electronic settlement approval flow from 35 seconds to 1 second • Increased data integrity and utilization Industry Travel & Transportation Korea Railroad Corporation (KORAIL) You Yung Pyo, IT Team Manager, Korea Railroad Corporation For our IT infrastructure to be competitive on the world stage, our CEO demanded that we adopt best practices based on the very latest in modern technologies. Only SAP S/4HANA fit the bill. “
14INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL Join the S/4HANA Movement Making Intelligent ERP tangible
15PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
16PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
S4 General UX Demo Search, Analytics : CFO Dashboard : Live CoPilot
18PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Productivity Improvements through Role Based Smart FIORI Apps 8000+ Native S/4HANA FIORI apps vs. 130+ FIORI Apps on ECC Measure E.g. SAP ERP with SAP GUI with SAP Fiori Duration 6:52min 4:42 min Clicks 92 65 Number of TNs/Apps 11 8 Fields filled 10 7 S/4HANA Comparison Videos • Financial Analysis, Balance sheet, P&L • Procurement • Sales Order Fulfillment • Inventory Management • Produce with Real-time MRP Insights • Process Receivables • Clear Incoming Payments • Post General Journal Entries • Analyze Third Party Services • Post Incoming Payments • Payments Proposals • Manage Vendor Line Item
19PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
20PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Traditional Data Model : Separate OLTP & OLAP Transactional Data Data Warehouse ETL (Extraction, Transformation and Loading) Aggregates Indexes Business Intelligence Business Application Calculation Engine Query Results Query Operational Data Store Copy
21PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Simplified Data Model : OLTP & OLAP Together on SAP HANA Business Intelligence Business Application Transactional Data
22PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Document MATERIAL VALUES VBAK LIKP PRCD_ Elements (new) VBFA (Simplified) VBAP KIPS VBRPVBRK BKPF BSEG ACDOCA FAAT_ DOC_IT FAAT_ YODA FAAT_ PLAN_ VALUES MARD MATDOC MATDOC_ EXTRACT MCHB MSKA MARC MKOL MSPR MSKU MSLB Used for Master Data only MLDOC MLDOCCCS MBEW EBEW QBEW OBEW ML Valuation Used for Master Data only CKMLKEPH CKMLPPWIP SALES FINANCE Document Header Item MATERIAL QUANTITIES Material Document IndicesTotals MATERIAL VALUES Valuation in MM or Valuation ML Aggregates Hybrid: Master Data with Valuated Stock MBEW EBEW QBEW OBEW MBEWH EBEWH QBEWH OBEWH MLPP MLCR MLCRF MLKEPH CKMLCR CKMLPP MLHD MLIT History MARD MKPF MSEG MCHB MSKA MSSA MSTE MARC MKOL MSSL MSTQ MSPR MSSQ MSTB MSKU MSLB MSSAH MSTEH MARCH MSLBH MSKAH MSTBH MSTQH MARDH MCHBH MSKAH MSSQH MKOLH MSKUH Aggregates Stock Aggregates History Inventory Movements Hybrid: Master Data with Stock Aggregates SAP Business Suite GL, AR, AP New GL CO AA ML Sales Order Delivery Billing Document Status Info Conditions Document Flow KONV VBFA Header Item CKMLPP CKMLCR MLCD CKLMMV004 CKMLMV004 BKPF ANEK BSEG FAGLF LEXA* COEP ANEP MLIT… ANEA GLT0 LFC1 FAGLF LEXT* COSS ANLC MLCD… KNC1 LFC3 COSP ANLP MCLR… KNC3 BSIS BSID FAGL BSIS BSIM* BSAS BSAD FAGL BSAS CKMI1* BSIK BSAK COBK MLHD… VBAK LIKP VBAP LIPS VBRP VBUP VAKPA VLKPA VRKPA VBOX VAPMA LKPMA VRPMAVBRK VBUK Simplifying database & table structures to prepare for scale
23PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
24PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP powered by Machine Learning, AI and Predictive MACHINE LEARNING/DEEP LEARNING INTELLIGENT ROBOTIC PROCESS AUTOMATION CONVERSATIONAL AI CO-PILOT RECAST PREDICTIVE ANALYTICS Fuel S/4HANA process innovation with artificial intelligence and boost the S/4HANA transformation value
25PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Building Intelligent Apps with SAP S/4HANA and SAP Leonardo SAP S/4HANA Material Management + SAP Leonardo SAP HANA Predictive Analytics = Stock in Transit Mitigate production risks by forecasting stock in transit delays SAP Leonardo SAP HANA Predictive Analytics SAP S/4HANA Sourcing and Procurement Contract Consumption Proactively renew contracts by predicting their expiration and consumption + = SAP S/4HANA Finance + SAP Leonardo SAP Leonardo Machine Learning Foundation = SAP Cash Application Automate payment and invoice matching SAP S/4HANA Finance + SAP Leonardo SAP Leonardo Machine Learning Foundation = Remittance Advice Extractor Extract payment info from unstructured documents to automate clearing process New Intelligent Apps+ = SAP S/4HANA Finance + SAP Leonardo SAP HANA Predictive Analytics = SAP Business Integrity Screening Increase accuracy of fraud alerts with predictive analytics SAP Leonardo IoT Application Enablement by SAP Data Science Services * SAP Predictive Maintenance Avoid unplanned machine downtime and reduce maintenance costs + = SAP S/4HANA Asset Management
26PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ ML Use Case: SAP Cash Application Challenges facing AR teams in clearing incoming payments Payments Jane, 34 AR Accountant Lump sum Missing info Discounts Exchange Customer call ??? Demo
27PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ » Electronic Bank Statements » Accounting Documents » Payment Advices » Customer Master Data » Bank Master Data » House Banks » Payer bank account information » Clearing data for electronic bank statement line items Invoice due since < 71 days >= 71 days Note contains exact reference number yes no Optimal Model Automatically select and arrange decision criteria & values Supporting 48 matching criteria & continuously growing TrainingHistorical Information as Input Example: How does machine learning find the matching invoice? Learning from reference data
28PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP Cash Application Next-generation intelligent invoice matching powered by machine learning
29PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Matching Incoming Payments to Outstanding Receivables 40% manually 70% with business rules (high maintenance) 94% with machine learning (low maintenance) “Businesses thrive on data. With SAP Leonardo Machine Learning, BASF is able to derive learnings from our rich datasets, and to drive business process improvements that directly benefit our customers.” Wiebe van der Horst, Chief Information Officer, BASF Group Intelligent ERP in Practice
30PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Process Automation The Intelligent ERP Is Here To Reinvent Businesses Delivered Finance • SAP Cash App** • Receivables Line-Item Matching • Remittance Advice / Payment Advice Extraction • Payables Line Item Matching • Lockbox • Goods Receipt / Invoice Receipt Monitor ML Status Proposal (GR/IR) ** • Real Spend Cost Center Anomaly Alerts** • Smart Alerts for Profit & Loss Analysis** • Business Integrity Screening / GRC ** • Tax Compliance Smart Automation / GRC R&D/Engineering • Integrated Digital Content Processing for Content Mgt.** Procurement • Contract Consumption • Propose Creation of New Catalog Items** • Payment Block - Cash Discount at Risk • Propose Contract for Materials** • Propose Material Group for Freetext Items** Supply Chain • Stock in Transit Sales • Delivery Performance / Delivery in Time • Quotation Conversion Probability Rate *Additional license - **Additional installation and license.
31PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Making Intelligent ERP Tangible 20+ Available ML Scenarios/Use Cases ID Scenario Technology Commercialization available as of Finance ML001 Receivables Line-Item Matching Leonardo on SCP SAP Cash Application (8005289) 1709 ML007 Remittance Advice / Payment Advice Extraction Leonardo on SCP SAP Cash Application (8005289) 1809 ML199 Payables Line Item Matching Leonardo on SCP SAP Cash Application (8005289) 1809 ML205 Lockbox Leonardo on SCP SAP Cash Application (8005289) 1809 ML006 Goods Receipt / Invoice Receipt Monitor ML Status Proposal (GR/IR) Leonardo on SCP SAP S/4HANA Cloud for Goods and Invoice Receipt Reconciliation (8006000) 1809 ML166 Business Integrity Screening / GRC PAI embedded SAP Business Integrity Screening for S/4HANA (7019061) 1709 ML165 Tax Compliance Smart Automation / GRC PAI embedded SAP Enterprise Management 1809 ML174 Real Spend Cost Center Anomaly Alerts PAI on SCP SAP RealSpend (8004615) 1809 ML028 Smart Alerts for Profit & Loss Analysis PAI on SCP SAP Financial Statement Insights for profit and loss (8004845) 1809 R&D/Engineering ML012 Integrated Digital Content Processing for Content Mgt. Leonardo on SCP SAP Leonardo machine learning foundation (8005361 – Prod.Descript. – Prod.Docu) 1811* Procurement ML002 Contract Consumption PAI embedded SAP Enterprise Management 1709 ML018 Propose Creation of New Catalog Items Leonardo on SCP SAP S/4HANA Cloud, intelligent insights for procurement (8006258) 1809 ML019 Payment Block - Cash Discount at Risk PAI embedded SAP Enterprise Management 1809 ML020 Proposal of options for Materials without Purchase Contract Leonardo on SCP SAP S/4HANA Cloud, intelligent insights for procurement (8006258) 1809 ML171 Propose Material Group for Freetext Items Leonardo on SCP SAP S/4HANA Cloud, intelligent insights for procurement (8006258) 1809 Supply Chain ML003 Stock in Transit PAI embedded SAP Enterprise Management 1709 Sales ML025 Delivery Performance / Delivery in Time PAI embedded SAP Enterprise Management 1809 ML024 Quotation Conversion Probability Rate PAI embedded SAP Enterprise Management 1809
32PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
33PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Next generation business processes The Intelligent ERP Is Here To Reinvent Businesses Cost management and profitability analysis Supplier management Invoice and payables management Inventory and basic warehouse management Collaborative sourcing and contract management Operational purchasing Accelerated plan to product Production engineering Production planning Project control and product development Production operations Quality management Inventory and basic warehouse management HR connectivity Time recording Core finance Enhanced request to service Optimized order to cash Streamlined procure to pay Accounting and closing operations Service management Service parts management Service master data management Inventory and basic warehouse management Receivables processing Order and contract management Service agreement management Maintenance management Procurement analytics
34PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Anytime Financial Close Imagine • Horizon Pharma growing through acquisitions • Lacking insights • Soft-close, on-the-fly financial reporting • Real-time decision-making The Impact • 75% reduction in days to close annual books • 25% reduction in G/L and financial closing costs • New self-service approach with less reliance on IT to get financial reports Legacy ERP approach • Timely, error prone consolidation process • Delayed strategic decisions due to lack of financial visibility • Limited financial analysis capability SAP S/4HANA Solution • Elimination of reconciliation process • Real-time consolidation • Single source of financial truth Explore your value: http://impact.s4value.com Companies who reduced their financial close time:
35PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA Intelligent automation with machine learning in SAP Cash Application accelerates account receivables process. ECC/Legacy ERP Workaround Significant manual and error-prone effort required to process payments. Only with SAP S/4HANA Accelerate Account Receivables processing with machine learning History Payments Invoices Matching proposals Automatically clears payments based on intelligent inference of payment matching criteria. Machine Learning AR Accountant Payments Customer Call Discounts Missing info Lump sum Exchange Machine-driven Automation
36PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA The intelligent GR/IR monitor provides real-time, centralized purchase orders insights, using machine learning. ECC/Legacy ERP Workaround Many manual, ad-hoc coordination cycles required to clear off problematic purchase orders. Only with SAP S/4HANA Streamline financial closing with intelligent GR/IR account reconciliation History GR/IR postings Recommendation of best action for Purchase Order items Recommends the best action to take to clear off problematic Purchase Orders. Machine Learning Purchase Orders with Goods receipt ≠ Invoice receipt AR Accountant Logistics Suppliers Other Accounting Buying Center Ad-hoc reports creation Manual gathering of information Root cause investigation Offline alignment and communication Machine-driven Automation
37PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Demand-Driven Supply Chain Imagine • JTI needed one platform to connect all technology-supporting areas, such as HR, finance, logistics and supply chain • Hard to capture demand insights • Need rapid synchronization to avoid overstocking of product The Impact • Synchronize capacity and materials planning • 5% reduction in inventory • 6.9% increase in customer order fill rate • 10x faster MRP run Legacy ERP approach • Rigid supply chains, slow to change • Poor and delayed demand insights Complex to manage all parties in unison • Lacking demand-driven planning What’s Possible • Transform to fluid supply chains and demand networks • Demand information captured through new signals • Ability to orchestrate complex networks • Manage demand-driven planning Explore your value: http://impact.s4value.com Companies leveraging new SAP S/4HANA supply-chain capabilities:
38PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ New Insights, Optimized Business Processes & New Capabilities delivered in S4 Central Procurement* MRP live Realtime & Prediction* Multilevel Variant Configuration & Simul.* Cash App Sales Order Fulfillment New Customer Mgmt., Service Core Option Legal Content Mgmt. Report & Repair Malfunction ML & PredictionNEW ProcessNEW in S/4HANANew Insights Integration SAP Cloud Platform Key Industry function embedded inside (e.g. Automotive, Consumer, Retail*, Mill…) AIN Overview & Analytics Predictive Contracts One Single Invoice International Trade Predictive Q2Order* Embedded TM Predictive Stock in Transit* Embedded EWM Advanced ATP DDMRP* Prod Engineering & Ops Det. Scheduling PPDS Commercial Projects Recipe Management Project & Portfolio Mgmt. Proposed Accruals* Closing Cockpit Compliance Framework Group Reporting* Multi-Channel Interaction Center Maintenance Planning Overview* Asset Mgmt. for resource scheduling Co-Pilot as Digital Assistant GDPR Tools Re-architecture & improved functions (e.g. Chemicals, A&D, Oil Gas, Utilities*…) Details &restrictions… Realtime Inventory Cash discount at risk* SAP C/4HANA Sales Force Support* *New/major update 1809 Capacity Planning* Quotation with Product Bundles* Propose mat. group, contracts & cat items* New Geographical Enablement GR/IR Monitor* Digital Content Process.*Delivery Performance* Responsibility Mgmt.* Procurement ManufacturingSupply Chain R&D Finance Sales Service CrossAsset Mgmt. Industries QM Overview & Analytics DMIIBP IPDSAP C/4HANA
© 2018 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. www.sap.com/contactsap Follow all of SAP

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SAP’s Intelligent Enterprise Strategy

  • 1.
    1INTERNAL© 2017 SAPSE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL Join the S/4HANA Movement SAP’s Intelligent Enterprise Strategy Lagnajit Patnaik Solutions Director, S/4HANA APJ Centre of Excellence (CoE)
  • 2.
    2PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Legacy ERP is any ERP system that cannot meet changing business needs. • Prevents innovation • Inflexible • Not real-time • Cannot leverage cloud • Reduces opportunity to work with LOB What is Legacy ERP?
  • 3.
    3PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ The Digital Era is evolving into The Intelligence Era ENABLING TECHNOLOGIES CUSTOMER VALUE CREATION • Mobile & Smartphone ubiquity • Cloud Computing • Social Networks • Big Data Cloud, Mobile & Big Data 2000s - 2010s Digital Transformation • Widespread PC adoption • Broadband Internet • ERP and business process technologies Client Server & Internet 1990s - 2000s Business Process Automation Mainframe & PCs 1960s – 1980s • Transistors & silicon revolution • Large scale Mainframe Computing adoption • Emergence of PC’s • Plant floor automation Industrial Automation • Machine Learning & Artificial Intelligence • IoT & Distributed computing • Blockchain Intelligent Technologies 2010s - 2020s Intelligent Enterprise
  • 4.
    4PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ The age of intelligence holds promise but you have to act now. Compared to the emerging competition, you might be running in slow motion What if you could, quickly and with low risk… Empower every employee to make faster, better decisions Eliminate technology hurdles that create business challenges Redeploy limited resources towards customer value Deploy the power of AI to differentiate your business model Drastically reduce IT cost
  • 5.
    5PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ
  • 6.
    6PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ The Intelligent Enterprise starts at the Digital Core Start with SAP S/4HANA to create end-to-end intelligent processes across all lines of business and industries, take the next leap in automation of key functions, and move first with machine learning investments by SAP Automation Next-generation processes End-to-end analytics 2 3 1 Real-time processing Combined transactions and analytics Simplified data model SAP HANA enables new capabilities
  • 7.
    7PUBLIC© 2017 SAPSE or an SAP affiliate company. All rights reserved. ǀ  46 years of innovation across all industries  390,000 customers in 193 countries  74% of the world’s transaction revenue touches an SAP system  Always providing multiple ways of innovation adoption Innovate Standardize Scale Trust 1972 1992 2004 2011 2013 2015 SAP ERP mysap.com SAP R/3 Client/Server SAP R/2 Mainframe Suite on HANA ERP w. Fiori on Hana SAP Hana In Memory 2018 We’ve come a long way together Digital Core SAP S/4HANA iERP SAP Cloud Platform SAP S/4HANA
  • 8.
    8PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA customer momentum is strong as of April 2019 10,900+ Licensed Customers 6,000+ Deployment Projects 3,000+ Live Customers (1st thousand in 2 years 7 months, 2nd thousand in 10 months) 25 Industry solutions Cloud (SaaS) IaaS, on-premise Organizations up to 200,000 users, databases up to 49TB 160 Available in 160 countries 38 languages available
  • 9.
    9PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ IT + Business Impact Reduction in hardware costs with a smaller system size 50% Reduction in servers; 17% IT support cost savings; from 80 subsidiary ECC instances to 1 S/4HANA system 75% Reduction in waste 40% Reduction in inventory levels 30% Examples of IT Impact Examples of Business Impact 9-month payback – thanks to reduced costs + new revenue opportunities "Removing the constraints of a highly customized system enables us to better respond to fast changing business models” - Jennifer Buko, Director of Business Transformation Business Impact
  • 10.
    10PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ
  • 11.
    11PUBLIC© 2017 SAPSE or an SAP affiliate company. All rights reserved. ǀ Customer Speak
  • 12.
    12PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Employees 44,395 Region APJ, Japan SAP S/4HANA Innovations • Reimagined business process for standardization and compliance • Minimized customization • Provided access to data in real-time for quick decision-making Challenges • Support a mergers and-acquisitions strategy to global expansion • Improve enterprise governance • Rearchitect the company for success in a changing, oversupplied market Benefits • 17% IT support cost savings • 75% reduced number of servers • 80 subsidiaries went live in 11 months Industry Mill Products JFE Steel Toshihiro Tanaka, Chief Financial Officer, JFE Steel Corporation “This project made it possible to standardize business processes and build a foundation for a global accounting system. SAP S/4HANA lets us analyze the group’s performance more efficiently.” “
  • 13.
    13PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Revenue €4.5 billion (2017) Employees 28,000 Region Korea, APJ SAP S/4HANA Innovations • Expedited insights and reporting across all key LOB’s • Significant Productivity gains from improved & Responsive UX • Improved System Performance, Data Reliability Challenges • Implement standard ERP functions for completely separate accounting for different business divisions • Use analytics to check the status of trains and anticipate failures in time to head them off • Improve large data processing speeds and lay the foundation for process stability • Add to the value of rail travel through better use of IT Benefits • Cut time to perform financial information aggregation from 5 days to 3 days • Cut time to settle accounts from 5 days to 3 days • Made orders-of-magnitude improvements in the time required to perform daily activity reporting and to display inventory, deliveries, and the status of contracts, orders, stock, and exports • Cut the accounting document electronic settlement approval flow from 35 seconds to 1 second • Increased data integrity and utilization Industry Travel & Transportation Korea Railroad Corporation (KORAIL) You Yung Pyo, IT Team Manager, Korea Railroad Corporation For our IT infrastructure to be competitive on the world stage, our CEO demanded that we adopt best practices based on the very latest in modern technologies. Only SAP S/4HANA fit the bill. “
  • 14.
    14INTERNAL© 2017 SAPSE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL Join the S/4HANA Movement Making Intelligent ERP tangible
  • 15.
    15PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
  • 16.
    16PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
  • 17.
    S4 General UXDemo Search, Analytics : CFO Dashboard : Live CoPilot
  • 18.
    18PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Productivity Improvements through Role Based Smart FIORI Apps 8000+ Native S/4HANA FIORI apps vs. 130+ FIORI Apps on ECC Measure E.g. SAP ERP with SAP GUI with SAP Fiori Duration 6:52min 4:42 min Clicks 92 65 Number of TNs/Apps 11 8 Fields filled 10 7 S/4HANA Comparison Videos • Financial Analysis, Balance sheet, P&L • Procurement • Sales Order Fulfillment • Inventory Management • Produce with Real-time MRP Insights • Process Receivables • Clear Incoming Payments • Post General Journal Entries • Analyze Third Party Services • Post Incoming Payments • Payments Proposals • Manage Vendor Line Item
  • 19.
    19PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
  • 20.
    20PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Traditional Data Model : Separate OLTP & OLAP Transactional Data Data Warehouse ETL (Extraction, Transformation and Loading) Aggregates Indexes Business Intelligence Business Application Calculation Engine Query Results Query Operational Data Store Copy
  • 21.
    21PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Simplified Data Model : OLTP & OLAP Together on SAP HANA Business Intelligence Business Application Transactional Data
  • 22.
    22PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Document MATERIAL VALUES VBAK LIKP PRCD_ Elements (new) VBFA (Simplified) VBAP KIPS VBRPVBRK BKPF BSEG ACDOCA FAAT_ DOC_IT FAAT_ YODA FAAT_ PLAN_ VALUES MARD MATDOC MATDOC_ EXTRACT MCHB MSKA MARC MKOL MSPR MSKU MSLB Used for Master Data only MLDOC MLDOCCCS MBEW EBEW QBEW OBEW ML Valuation Used for Master Data only CKMLKEPH CKMLPPWIP SALES FINANCE Document Header Item MATERIAL QUANTITIES Material Document IndicesTotals MATERIAL VALUES Valuation in MM or Valuation ML Aggregates Hybrid: Master Data with Valuated Stock MBEW EBEW QBEW OBEW MBEWH EBEWH QBEWH OBEWH MLPP MLCR MLCRF MLKEPH CKMLCR CKMLPP MLHD MLIT History MARD MKPF MSEG MCHB MSKA MSSA MSTE MARC MKOL MSSL MSTQ MSPR MSSQ MSTB MSKU MSLB MSSAH MSTEH MARCH MSLBH MSKAH MSTBH MSTQH MARDH MCHBH MSKAH MSSQH MKOLH MSKUH Aggregates Stock Aggregates History Inventory Movements Hybrid: Master Data with Stock Aggregates SAP Business Suite GL, AR, AP New GL CO AA ML Sales Order Delivery Billing Document Status Info Conditions Document Flow KONV VBFA Header Item CKMLPP CKMLCR MLCD CKLMMV004 CKMLMV004 BKPF ANEK BSEG FAGLF LEXA* COEP ANEP MLIT… ANEA GLT0 LFC1 FAGLF LEXT* COSS ANLC MLCD… KNC1 LFC3 COSP ANLP MCLR… KNC3 BSIS BSID FAGL BSIS BSIM* BSAS BSAD FAGL BSAS CKMI1* BSIK BSAK COBK MLHD… VBAK LIKP VBAP LIPS VBRP VBUP VAKPA VLKPA VRKPA VBOX VAPMA LKPMA VRPMAVBRK VBUK Simplifying database & table structures to prepare for scale
  • 23.
    23PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
  • 24.
    24PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP powered by Machine Learning, AI and Predictive MACHINE LEARNING/DEEP LEARNING INTELLIGENT ROBOTIC PROCESS AUTOMATION CONVERSATIONAL AI CO-PILOT RECAST PREDICTIVE ANALYTICS Fuel S/4HANA process innovation with artificial intelligence and boost the S/4HANA transformation value
  • 25.
    25PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Building Intelligent Apps with SAP S/4HANA and SAP Leonardo SAP S/4HANA Material Management + SAP Leonardo SAP HANA Predictive Analytics = Stock in Transit Mitigate production risks by forecasting stock in transit delays SAP Leonardo SAP HANA Predictive Analytics SAP S/4HANA Sourcing and Procurement Contract Consumption Proactively renew contracts by predicting their expiration and consumption + = SAP S/4HANA Finance + SAP Leonardo SAP Leonardo Machine Learning Foundation = SAP Cash Application Automate payment and invoice matching SAP S/4HANA Finance + SAP Leonardo SAP Leonardo Machine Learning Foundation = Remittance Advice Extractor Extract payment info from unstructured documents to automate clearing process New Intelligent Apps+ = SAP S/4HANA Finance + SAP Leonardo SAP HANA Predictive Analytics = SAP Business Integrity Screening Increase accuracy of fraud alerts with predictive analytics SAP Leonardo IoT Application Enablement by SAP Data Science Services * SAP Predictive Maintenance Avoid unplanned machine downtime and reduce maintenance costs + = SAP S/4HANA Asset Management
  • 26.
    26PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ ML Use Case: SAP Cash Application Challenges facing AR teams in clearing incoming payments Payments Jane, 34 AR Accountant Lump sum Missing info Discounts Exchange Customer call ??? Demo
  • 27.
    27PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ » Electronic Bank Statements » Accounting Documents » Payment Advices » Customer Master Data » Bank Master Data » House Banks » Payer bank account information » Clearing data for electronic bank statement line items Invoice due since < 71 days >= 71 days Note contains exact reference number yes no Optimal Model Automatically select and arrange decision criteria & values Supporting 48 matching criteria & continuously growing TrainingHistorical Information as Input Example: How does machine learning find the matching invoice? Learning from reference data
  • 28.
    28PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP Cash Application Next-generation intelligent invoice matching powered by machine learning
  • 29.
    29PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Matching Incoming Payments to Outstanding Receivables 40% manually 70% with business rules (high maintenance) 94% with machine learning (low maintenance) “Businesses thrive on data. With SAP Leonardo Machine Learning, BASF is able to derive learnings from our rich datasets, and to drive business process improvements that directly benefit our customers.” Wiebe van der Horst, Chief Information Officer, BASF Group Intelligent ERP in Practice
  • 30.
    30PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Process Automation The Intelligent ERP Is Here To Reinvent Businesses Delivered Finance • SAP Cash App** • Receivables Line-Item Matching • Remittance Advice / Payment Advice Extraction • Payables Line Item Matching • Lockbox • Goods Receipt / Invoice Receipt Monitor ML Status Proposal (GR/IR) ** • Real Spend Cost Center Anomaly Alerts** • Smart Alerts for Profit & Loss Analysis** • Business Integrity Screening / GRC ** • Tax Compliance Smart Automation / GRC R&D/Engineering • Integrated Digital Content Processing for Content Mgt.** Procurement • Contract Consumption • Propose Creation of New Catalog Items** • Payment Block - Cash Discount at Risk • Propose Contract for Materials** • Propose Material Group for Freetext Items** Supply Chain • Stock in Transit Sales • Delivery Performance / Delivery in Time • Quotation Conversion Probability Rate *Additional license - **Additional installation and license.
  • 31.
    31PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Making Intelligent ERP Tangible 20+ Available ML Scenarios/Use Cases ID Scenario Technology Commercialization available as of Finance ML001 Receivables Line-Item Matching Leonardo on SCP SAP Cash Application (8005289) 1709 ML007 Remittance Advice / Payment Advice Extraction Leonardo on SCP SAP Cash Application (8005289) 1809 ML199 Payables Line Item Matching Leonardo on SCP SAP Cash Application (8005289) 1809 ML205 Lockbox Leonardo on SCP SAP Cash Application (8005289) 1809 ML006 Goods Receipt / Invoice Receipt Monitor ML Status Proposal (GR/IR) Leonardo on SCP SAP S/4HANA Cloud for Goods and Invoice Receipt Reconciliation (8006000) 1809 ML166 Business Integrity Screening / GRC PAI embedded SAP Business Integrity Screening for S/4HANA (7019061) 1709 ML165 Tax Compliance Smart Automation / GRC PAI embedded SAP Enterprise Management 1809 ML174 Real Spend Cost Center Anomaly Alerts PAI on SCP SAP RealSpend (8004615) 1809 ML028 Smart Alerts for Profit & Loss Analysis PAI on SCP SAP Financial Statement Insights for profit and loss (8004845) 1809 R&D/Engineering ML012 Integrated Digital Content Processing for Content Mgt. Leonardo on SCP SAP Leonardo machine learning foundation (8005361 – Prod.Descript. – Prod.Docu) 1811* Procurement ML002 Contract Consumption PAI embedded SAP Enterprise Management 1709 ML018 Propose Creation of New Catalog Items Leonardo on SCP SAP S/4HANA Cloud, intelligent insights for procurement (8006258) 1809 ML019 Payment Block - Cash Discount at Risk PAI embedded SAP Enterprise Management 1809 ML020 Proposal of options for Materials without Purchase Contract Leonardo on SCP SAP S/4HANA Cloud, intelligent insights for procurement (8006258) 1809 ML171 Propose Material Group for Freetext Items Leonardo on SCP SAP S/4HANA Cloud, intelligent insights for procurement (8006258) 1809 Supply Chain ML003 Stock in Transit PAI embedded SAP Enterprise Management 1709 Sales ML025 Delivery Performance / Delivery in Time PAI embedded SAP Enterprise Management 1809 ML024 Quotation Conversion Probability Rate PAI embedded SAP Enterprise Management 1809
  • 32.
    32PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Intelligent ERP  Machine Learning  Predictive Analytics  Artificial Intelligence  IoT/sensor based managements of assets Re-imagined business processes  Embedded business functions (WM, TM, MDG, ATP,..)  New MRP, dynamic inventory, constrained based planning  Intelligence through machine learning applications  Industry solutions in the core Digital UX  Insight to Action  In the moment, embedded analytics  Self-service, multi-dimensional reporting Simplifications  Streamlined data models & landscape simplification  Better performance and scalability  Flexible deployment options What are the New S/4HANA Innovations that differ from ECC? Watch VideoBuilt for Scale, People & Innovation 4 3 2 1
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    33PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Next generation business processes The Intelligent ERP Is Here To Reinvent Businesses Cost management and profitability analysis Supplier management Invoice and payables management Inventory and basic warehouse management Collaborative sourcing and contract management Operational purchasing Accelerated plan to product Production engineering Production planning Project control and product development Production operations Quality management Inventory and basic warehouse management HR connectivity Time recording Core finance Enhanced request to service Optimized order to cash Streamlined procure to pay Accounting and closing operations Service management Service parts management Service master data management Inventory and basic warehouse management Receivables processing Order and contract management Service agreement management Maintenance management Procurement analytics
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    34PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Anytime Financial Close Imagine • Horizon Pharma growing through acquisitions • Lacking insights • Soft-close, on-the-fly financial reporting • Real-time decision-making The Impact • 75% reduction in days to close annual books • 25% reduction in G/L and financial closing costs • New self-service approach with less reliance on IT to get financial reports Legacy ERP approach • Timely, error prone consolidation process • Delayed strategic decisions due to lack of financial visibility • Limited financial analysis capability SAP S/4HANA Solution • Elimination of reconciliation process • Real-time consolidation • Single source of financial truth Explore your value: http://impact.s4value.com Companies who reduced their financial close time:
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    35PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA Intelligent automation with machine learning in SAP Cash Application accelerates account receivables process. ECC/Legacy ERP Workaround Significant manual and error-prone effort required to process payments. Only with SAP S/4HANA Accelerate Account Receivables processing with machine learning History Payments Invoices Matching proposals Automatically clears payments based on intelligent inference of payment matching criteria. Machine Learning AR Accountant Payments Customer Call Discounts Missing info Lump sum Exchange Machine-driven Automation
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    36PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ SAP S/4HANA The intelligent GR/IR monitor provides real-time, centralized purchase orders insights, using machine learning. ECC/Legacy ERP Workaround Many manual, ad-hoc coordination cycles required to clear off problematic purchase orders. Only with SAP S/4HANA Streamline financial closing with intelligent GR/IR account reconciliation History GR/IR postings Recommendation of best action for Purchase Order items Recommends the best action to take to clear off problematic Purchase Orders. Machine Learning Purchase Orders with Goods receipt ≠ Invoice receipt AR Accountant Logistics Suppliers Other Accounting Buying Center Ad-hoc reports creation Manual gathering of information Root cause investigation Offline alignment and communication Machine-driven Automation
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    37PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ Demand-Driven Supply Chain Imagine • JTI needed one platform to connect all technology-supporting areas, such as HR, finance, logistics and supply chain • Hard to capture demand insights • Need rapid synchronization to avoid overstocking of product The Impact • Synchronize capacity and materials planning • 5% reduction in inventory • 6.9% increase in customer order fill rate • 10x faster MRP run Legacy ERP approach • Rigid supply chains, slow to change • Poor and delayed demand insights Complex to manage all parties in unison • Lacking demand-driven planning What’s Possible • Transform to fluid supply chains and demand networks • Demand information captured through new signals • Ability to orchestrate complex networks • Manage demand-driven planning Explore your value: http://impact.s4value.com Companies leveraging new SAP S/4HANA supply-chain capabilities:
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    38PUBLIC© 2018 SAPSE or an SAP affiliate company. All rights reserved. ǀ New Insights, Optimized Business Processes & New Capabilities delivered in S4 Central Procurement* MRP live Realtime & Prediction* Multilevel Variant Configuration & Simul.* Cash App Sales Order Fulfillment New Customer Mgmt., Service Core Option Legal Content Mgmt. Report & Repair Malfunction ML & PredictionNEW ProcessNEW in S/4HANANew Insights Integration SAP Cloud Platform Key Industry function embedded inside (e.g. Automotive, Consumer, Retail*, Mill…) AIN Overview & Analytics Predictive Contracts One Single Invoice International Trade Predictive Q2Order* Embedded TM Predictive Stock in Transit* Embedded EWM Advanced ATP DDMRP* Prod Engineering & Ops Det. Scheduling PPDS Commercial Projects Recipe Management Project & Portfolio Mgmt. Proposed Accruals* Closing Cockpit Compliance Framework Group Reporting* Multi-Channel Interaction Center Maintenance Planning Overview* Asset Mgmt. for resource scheduling Co-Pilot as Digital Assistant GDPR Tools Re-architecture & improved functions (e.g. Chemicals, A&D, Oil Gas, Utilities*…) Details &restrictions… Realtime Inventory Cash discount at risk* SAP C/4HANA Sales Force Support* *New/major update 1809 Capacity Planning* Quotation with Product Bundles* Propose mat. group, contracts & cat items* New Geographical Enablement GR/IR Monitor* Digital Content Process.*Delivery Performance* Responsibility Mgmt.* Procurement ManufacturingSupply Chain R&D Finance Sales Service CrossAsset Mgmt. Industries QM Overview & Analytics DMIIBP IPDSAP C/4HANA
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    © 2018 SAPSE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. www.sap.com/contactsap Follow all of SAP